Wealth manager St James's Place has raised its full-year dividend by 33pc
after increasing the number of assets under its control.

The company, which is 60pc owned by Lloyds Banking Group, posted net inflows of business of £3.3bn, taking total funds under management to £28.5bn, compared with £27bn a year earlier.

Overall, statutory pre-tax profits fell to £21.3m compared with £161.9m a year earlier, due to weaker investment returns. However, this rose to £109.7m following a policyholder tax gain.

David Bellamy, chief executive, said the company hoped to raise its full-year dividend by another 33pc in 2012. The group will pay a final dividend of 4.8p to investors on May 16, taking its total dividend to 8p, up from 6p in 2010.

"The combination of growth in funds under management and their increasing maturity drive future cash flows, which is why we have been able to grow dividends by 33pc in each of the past two years and have the confidence today to signal a similarly significant increase for 2012," he said.

"New business so far in this quarter is running at the same level as the final quarter of 2011, while funds under management have grown to £29.5bn at the end of January."